Senior Downing Street aides fall out

Last updated at 10:14 05 February 2007

Two of Tony Blair's senior aides at the centre of the "cash for peerages" storm are at loggerheads, it was claimed today.

Insiders say Downing Street officials Ruth Turner and John McTernan have fallen out in the course of the police investigation. Each is said to fear he or she has been implicated unfairly by someone else trying to clear their name.

Before Christmas Ms Turner, the director of government relations, decided to employ her own lawyer rather than rely on the same Labour Party lawyer who was representing Mr McTernan.

An insider said: "There is a lot of bad blood between them. Neither wants to be hung out to dry."

The News of the World claimed yesterday that Mr McTernan, the PM's political secretary, had "started the dominos falling" when quizzed by Scotland Yard detectives. The newspaper alleged his diaries would form part of evidence submitted to the Crown Prosecution Service.

The diaries reportedly revealed a secret meeting where high-value donors were discussed. Mr McTernan last night denied he had supplied police with a personal diary, saying he did not keep one, and also denied acting as a "mole" in No 10 who was alerting police to deleted emails and other evidence.

According to another report three people are likely to face charges arising from the 11-month investigation. CPS sources told the Times their lawyers had received files from police indicating prosecutions should go ahead, although the inquiry is still continuing.

"I would be very surprised if they are not charged," one source said. Mr Blair is also likely to be interviewed a third time because he could not give police answers they required at his last meeting with detectives.

The three whose positions are most serious - Lord Levy, Ms Turner and biotech tycoon Sir Christopher Evans who loaned Labour £1 million before the last election - have already been arrested. About 11 boxes of files are said to have been delivered to the prosecutors.

Expectations are growing in Westminster that the inquiry will end this month and the CPS will decide on charges very quickly.

Until recently it had been assumed a decision would not be reached until autumn - long after Mr Blair had left No 10.